Norfolk Southern profit hit by downturn in coal

Wednesday, October 24, 2012

Norfolk Southern reported a profit of $402 million in the third quarter, 27 percent less than the $554 million it earned in the third quarter of 2011.
Railway operating revenues totaled $2.7 billion in the quarter, down 7 percent from the $2.9 billion in the third-quarter 2011.
"Third-quarter results reflect weak market conditions, which resulted in declines in our coal and merchandise shipments," said Norfolk Southern Chief Executive Officer Wick Moorman. "We remain focused on controlling costs while continuing to provide high service levels for our customers and invest in projects that will support future growth."
General merchandise revenues were $1.4 billion, 1 percent lower than third-quarter 2011 results. Coal revenues fell 22 percent to $701 million, compared with the same period last year. Intermodal revenues were $567 million, 3 percent higher compared with the third quarter of 2011. - Chris Dupin